Do you know how to calculate insurance

While checking your family's balance sheet, you may classify assets in the form of homes, vehicles, pensions, or financial investments. Only, there are other elements that can provide benefits that can not be given by other assets. This asset is life insurance.

Yes, life insurance is a form of financial protection provided by a life insurance company against a person (policyholder) against the risk of dying.

Thus, the abandoned party (the insured) can still receive a certain amount of money, where the money can be used as living expenses by the testator.

Life insurance needs to be owned by everyone. In addition to providing protection against financial losses caused by the risk of uncertainty in life, life insurance can also support a happy and prosperous old-age plan.

Before discussing how to calculate the sum insured, it is better as a prospective life insurance policyholders, you already have the following points.

    Economic value is a value where your income per year averaged in each month. Or for an employee is the amount of net salary brought home. For the interest of the sum insured, the focus is only on economic value is not enough or not the salary.
    The existence of individuals other than you who are very dependent on the economic value, eg wife, husband, children, older brother, sister or parents who have retired.
    Transport other party's funds in business activity, for example personal loan outside of bank debt or other financing institution that has no life insurance.

Then, how to calculate the optimal sum insured? Here we provide a description.
Human Life Value Method

In this method, the absolute sum assured is calculated based on monthly income multiplied by the amount of funds available to sustain life, regardless of the interest factor and the growth of funds if the sum insured is stored in the banking products.
Income Based Value Method

This method calculates the sum insured by calculating the amount of interest or return if the sum insured received is stored in banking products.
Financial Needs Based Value Method

The amount of sum assured has a minimum range equal to the amount of money the current specific needs (present value) multiplied by 150%. While the maximum sum insured is for the money in the future (future value) multiplied by 80%.

This method is absolutely combined with investments made (either monthly or yearly) to achieve future financial needs of the financial needs.
This method can also be used for those who earn a very large monthly income.

So the other two methods above can not be used again, because it will give the amount of sum insured is too large (unlikely sum assured approved by the insurance company).

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